Scott v Copenhagen Reinsurance Company (UK) Ltd.

Scott v Copenhagen Reinsurance Company (UK) Ltd.

The loss of the BA aircraft did not arise from the same event as the loss of the KAC fleet and spares. The BA aircraft was not a target of the invasion, its loss occurred after a period of 'wait and see' and as a result of subsequent events, notably the outbreak of war and its destruction during hostilities. There was no unity of intent, time, or cause between the losses. The requirement for a significant causal link for aggregation under 'arising from one event' was not met.

Parties
Claimant/appellant: Murray Arnold Campbell Scott (for and behalf of all Underwriting Members of Syndicates 401 and 857 at Lloyd’s); Defendant/respondent: The Copenhagen Reinsurance Company (UK) Ltd
Jurisdiction
England and Wales
Judgment Date
16 May 2003
Procedural Posture
Civil Appeal / Appeal From Queen’s Bench Division, Commercial Court
Outcome
Appeal dismissed
Legal Topics
Reinsurance, Aggregation Clauses, Actual Total Loss, Causation, War Risks
Insurance Law Contract Law Reinsurance Aggregation Clauses Actual Total Loss Causation War Risks

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Parties

Murray Arnold Campbell Scott (for and behalf of all Underwriting Members of Syndicates 401 and 857 at Lloyd’s)

Claimant/appellant

The Copenhagen Reinsurance Company (UK) Ltd

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From Queen’s Bench Division, Commercial Court

Legal Issues

  1. 1 Whether the loss of the British Airways aircraft should be aggregated with the losses of the Kuwait Airways Corporation aircraft and spares under the reinsurance policy as arising from one event
  2. 2 Interpretation of 'arising from one event' in the context of aggregation clauses in insurance/reinsurance contracts

Ratio Decidendi

The loss of the BA aircraft did not arise from the same event as the loss of the KAC fleet and spares. The BA aircraft was not a target of the invasion, its loss occurred after a period of 'wait and see' and as a result of subsequent events, notably the outbreak of war and its destruction during hostilities. There was no unity of intent, time, or cause between the losses. The requirement for a significant causal link for aggregation under 'arising from one event' was not met.

Court Disposition

Appeal dismissed

Orders

  • Claimants/appellants’ appeal against the judgment of Langley J be dismissed
  • No order as to costs